December 21, 2025: The U.S. Navy has become more active in helping the Philippines block China from taking areas of the South China Sea that are legally Filipino. They patrol a bit more and cast mean looks towards China. Last year saw the Chinese ramming Filipino ships as well as using water cannon against them. Ongoing territorial disputes with China in the South China Sea continue to escalate as the Chinese openly and aggressively drive Filipino navy ships from areas the Philippines have long controlled. In 2016 the Permanent Court of Arbitration in the Netherlands ruled that, under the UN Convention on the Law of the Sea regarding the case brought by the Philippines in 2013 protesting Chinese claims and activities in the South China Sea, the Chinese were behaving badly. China claims 90 percent of the South China Sea. Over the last sixteen years China has been increasingly aggressive while asserting those claims. This recently escalated to more tangible things like the artificial islands built throughout the South China Sea and garrisoned with heavily armed Chinese forces.

The United States and other Western and local allies like Australia, South Korea, Japan, Taiwan and Singapore send warships and aircraft into the disputed areas to confront the Chinese. The message is that if China wants to start World War 3 in the South China Sea, the opposition will be substantial and include most of China’s neighbors.

An added problem for the Chinese was the 2022 election of Ferdinand Bongbong Romualdez Marcos Jr. as the Filipino president. Nicknamed Bongbong, the new president was the son of an ousted prior Filipino president. Bongbong was a populist reformer who delivered on his campaign promises to reform the laws that made it difficult for Filipino farmers to make a living. Bongbong also upgraded and reinforced the armed forces, as well as military alliances with the United States and local nations that were also threatened by China.

The Philippines increased its military presence and activities in the South China Sea, especially around the Spratly Islands and Scarborough Shoal, where it claims sovereignty over parts of the disputed waters and features. The country has also received support from its allies, such as the United States, Japan, and Australia, in conducting joint exercises and patrols, as well as providing military assistance and equipment. However, China has also intensified its operations and use of coercion in the region, deploying more ships, aircraft, and missiles, and building new structures and facilities on the artificial islands it occupies.

The Philippines has maintained a balance between its alliance with the United States and its economic ties with China. The Philippines reaffirmed its commitment to the Mutual Defense Treaty and the Enhanced Defense Cooperation Agreement with the United States, which provide for mutual defense and security cooperation, as well as access to military bases and facilities. The country has also welcomed the U.S. support for its maritime claims and rights in the South China Sea, as well as the U.S. sanctions against Chinese officials and entities involved in the disputes. However, the Philippines has also sought to improve diplomatic relations with China, which is its largest trading partner and a major source of investment.

Meanwhile the Philippines has an unemployment rate of about five percent, inflation is about three percent in 2025, the local currency, the peso, has stabilized its exchange rate versus the dollar to between 55 and 60 pesos to the dollar. Economic growth for 2025 is forecast at six percent.

Decades of effort finally reduced or eliminated the internal threat of leftist and Islamic rebellions. Now most Filipinos are more concerned about endemic corruption, but optimistic in the progress made since 2023 to reduce drug addiction and reduce drug smuggling.